RXO, Inc.: The Dead End of Digital Freight Brokerage
RXO is a fundamentally flawed business that has been kept aloft with a series of misleading maneuvers, in our view. Out of cash and out of options, we see a dead end ahead.
The disclaimer at the end is an important part of this post. We strongly encourge you to read it.
THIS IS A SUMMARY OF THE ATTACHED REPORT
We are short the stock of RXO. Over its 2 ½ years as a public company, we believe RXO has masked the consequences of its demonstrably unsustainable business by misleading shareholders. Our analysis suggests that RXO misrepresented financial prospects, employed dubious accounting, and hid the financial collapse of an acquisition target while suggesting the combined company would be a financial powerhouse. We believe that absent accounting games, RXO’s weak underlying business merits 60-90% downside compared to better-capitalized and better-run peers in the private and public markets.
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DISCLAIMER
This report represents the opinions of Keith Dalrymple and Dalrymple Finance on RXO, Inc. It is an opinion piece, reflects our biases and should not be taken as investment advice of any kind. This is not an offer to sell or a solicitation of an offer to buy any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.
According to Yahoo Finance 17 sell-side analysts cover RXO. Sell-side analysts are licensed professionals. They likely have significantly more resources than Dalrymple Finances. They also likely have access to management. We strongly encourage those seeking investment advice to consult one or more of the sell-side research professionals covering the stock.
The report is based on publicly available information and due diligence Dalrymple Finance believes to be accurate and reliable. However, it is presented “as is” without warranty of any kind, whether express or Dalrymple Finance makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. This report contains a large measure of analysis and opinion. It is subject to change without notice.
Following the publication of this report we intend on continuing to transact in the securities mentioned. We may be long, short or have no position at any time. That position may change at any time.
We are investors with the goal of profiting from our research. You should assume that as of the publication date, that Dalrymple Finance, Keith Dalrymple and/or affiliates have a position in the securities mentioned in this report. We and affiliates have a vested financial interest in securities discussed in this report.
In no event shall Dalrymple Finance or Keith Dalrymple be liable for any claims, losses costs or damages of any kind, including direct, indirect and otherwise, arising out of or in any way connected with information in this report.
Intriguing. Thanks for sharing this.